Dairy market at a glance - May 2011

Milk production in the EU, New Zealand and the US for January to March 2011 has increased between +2.01% and +2.64% compared to the same period last year. This is due to increase in farm gate milk price in the US and EU, and also to favorable weather conditions in NZ and EU. South America has increased the production by +16.71% (Argentina), +14.9% for (Uruguay) and +7.01% (Brazil), due to favorable weather and increased farm gate milk prices. Source: CLAL.it

Milkproduction in the two hemispheres:


New Zealand: +2.24

The increase in milk production during the second half-season is mainly due to better weather conditions and higher dairy cow productivity.

Australia: + 0,03%

Milk production is slightly higher than a year ago. Improved weather conditions in the second half-season allowed to recover volumes of milk.

USA: +2,01% (Jan-Apr 2011 vs Jan-Apr 2010)

due mainly to the increase in farm gate milk prices. As a direct consequence Milk Producers have increased the number of head of cattle and the cow productivity. In 2012 milk production is projected to rise.

Argentina: +16,71% (e) (Jan – Apr 2011 vs Jan – Apr 2010)

Strong increase in farm gate milk price (+14,4% Pesos/lt), favourable weather conditions and increased investment in farms.

Uruguay: +14,09% (e) (Jan – Apr 2011 vs Jan – Apr 2010)

Increase in farm gate milk price (+ 23,34% UYU$/lt)

Brasil: + 7,01% (Jan – Dec 2010 vs Jan – Dec 2009)

Favourable weather conditions, increase in farm gate milk price (+ 5,46% R$/lt)

EU: +2,64% (Jan – Mar 11 vs Jan – Mar 10)

Milk production increase, especially in: Ireland, France and Germany due to favourable weather conditions and a positive response of milk producers following the increase in milk prices.

Milk production decrease, especially in: Bulgaria, Romania, due to higher livestock feeding prices.


In Ireland, the largest exporting Country in the Europe, there has been a sharp acceleration in milk production up to the end of 2010 and has continued into the early 2011, due mainly to higher milk prices and the priority for a Producer to maximize the production. The largest Farms are preparing to take the opportunities offered by the quota end in 2015.


Italian milk production was up +1,39% in the period JanuaryMarch 2011, compared to the same period of previous year. In 2011 milk production is projected to increase up to +0,7% approximately.


Butter and WMP prices are slightly decreasing. SMP prices have been steady to slightly higher, mainly due to the increase in demand and the limited stock available both in the USA and Oceania. Cheese prices are strengthening, due to increased demand by Russia, Mexico and South Korea.

CLAL web site